Greater New Orleans

Amplify Resources' youth group gave a presentation about the dangers of drinking, drugs and poor decision-making at a meeting of the Florida Parishes Human Services/Addictive Disorders in Covington in 2009.
(Photo by The Times-Picayune)

A financial audit of a St. Tammany Parish nonprofit dedicated to youth alcohol and substance abuse prevention found more than $20,000 in disbursements without invoices or other documentation, according to a report released Monday by the Louisiana Legislative Auditor's Office. At the same time, Amplify Resources suffers from declines in grant and donation revenues that threaten its future, the audit found.

The audit, performed by accounting firm LaPorte, covers the nonprofit's financial records for the fiscal year that ended in June 2012. The Mandeville-based group had $367,000 in operating expenses and received a $204,000 grant from the state-funded Florida Parishes Human Services Authority, according to the report.

Interim Executive Director Libby Cole, who was appointed to the position in August, said she couldn't immediately comment Monday. She said she would be able to comment after the nonprofit's board of directors reviews the audit at a meeting Monday night.

"The organization has suffered recurring significant reductions in grant, program and donation revenues and has a net deficiency in net assets that raise substantial doubt about its ability to continue as a going concern," the accounting firm wrote in a letter to the board of directors.

Last year, Amplify Resources had a deficit in net assets of more than $75,000, according to the report. Despite efforts to cut expenses and increase revenues through fundraising and fee increases, the organization has continued to see losses, the report says.

"Management will continue to monitor their financial position throughout the upcoming year and will work toward mitigating the current year deficit in net assets in subsequent years," the audit says.

Among other programs, the group teaches communication and self-esteem skills to students in the classroom and promotes drug awareness through Red Ribbon Week.

According to the audit, the group failed to comply with state law requiring financial statements to be submitted within six months of the end of the fiscal year, the report says. Instead, the group's records were turned over earlier this month.

Meanwhile, auditors discovered 148 disbursements totaling $20,161 that had no invoices or other supporting documentation. In its response to the audit, the nonprofit said it would ensure that documentation is received and saved for each disbursement in the future.